Company Overview
NEM Insurance Plc is one of Nigeria’s oldest and most established non-life (general) insurance companies. Founded in 1948 and listed on the Nigerian Exchange (NGX) since 1989, the company has built a strong reputation in underwriting, claims settlement, and corporate risk management. NEM Insurance provides a wide range of insurance products to individuals, SMEs, corporate organizations, and government institutions.
Current price: N25.5
Rating: Buy
Price projection: N41.17 (61.45%) and N50.94 (99.76%)
Technical Analysis
In this report, we shall use the following tools and analysis methods:
Elliott’s wave theory to understand the overall market sentiment
Fibonacci tools to determine support and resistance levels
The Relative Strength Index and volume to evaluate the market’s strength
The Money Flow Index to determine the market liquidity
Moving average and MACD to understand the nature of the trend
Top-down analysis to know the best investment position
Elliott wave analysis
Weekly chart: Market overview
On the weekly chart, NEM experienced a deep flat correction (WXY). This correction completes Wave IV in the grand cycle. Using the Fibonacci retracement, the corrective phase retraced to 100% of wave W. This performance signals a potential trend reversal is on the horizon
Daily chart: Investment opportunity
On the daily chart, NEM completed a full 5-wave bearish market cycle. Given this sentiment, the market is expected to commence Wave V of the grand cycle. The investment opportunities should be within a pullback with N41.17 (61.45%) and N50.94 (99.76%) as the market projection.
Indicator analysis
Weekly chart: Market overview
Although volume is low, the stock’s liquidity and momentum regained their strength, signalling renewed investor interest. Also, MACD sustained its bearish momentum, which offers investment opportunities
Daily chart: Investment opportunity
On the daily chart, NEM sustained its bullish volume for five days, signalling that investors are buying into value despite the low liquidity in the market. Also, RSI’s momentum strengthened, aligning with the bullish sentiment. This performance weakened MACD’s bearish momentum, preparing investors for a bullish rally. Thus, investors should watch for the support zone between N24 and N26
Fundamental Analysis
Full year financial report for 2025
Key insight: The financial rating for NEM Insurance is 76%, making it sustable for long-term trading and medium-term investment
Key Highlights
Revenue increased by ₦54.39 billion, representing a 55.52% year-on-year growth.
Profit After Tax (PAT) declined by ₦5.34 billion, a decrease of 18.27%, indicating lower profitability despite stronger revenue.
Total Assets grew by 49.75%, reflecting a significant expansion in the company’s asset base.
Total Liabilities rose by 72.78%, outpacing asset growth and suggesting increased obligations that warrant monitoring.
Net Cash Inflow from Operating Activities improved by 39.47%, indicating stronger cash generation from core insurance operations.
SWOT analysis
